Hi to all! Im starting to learn forex and came across limit order in my demo account. I was just curious. I’ve read somewhere that limit orders sometimes does not get filled. Is this true? If so why is it not getting filled? And also is it allowed to place two limit orders at the same time, lets say eur/usd limit order buy at 1.0000 and sell 1.0000? are there any additional payments to use limit orders? thanks.
If you put a buy limit order at 1.0000 and the price never touch that price, trading above that price always, then your order is not filled.
About placing two limit orders at the same price, is not possible.
You have something called “stop level”, that not to be confused with “stop loss”. Stop level is the minimum distance between current market price and pendent orders (like limit or stop orders, again, do not confuse them with stop loss).
Let say, for example EURUSD has (in my broker) 4 pip stop level. I can’t place a limit order if the price of the limit order is nearer than 4 pips to the market price.
If you wish to place one pendent order for sell and other for buy at 1.0000 you need to place one in limit and other in stop.
If market price is above 1.0000 then you need to place a limit buy and stop sell orders, if price is below 1.0000 then it is a stop buy and limit sell.
There is a good article at investopedia titled “How To Place Orders With A Forex Broker”. Here is solution of your queries.
Limit orders are filled “at or better”. That means they will only get filled at the specified price or a better one. If you want to sell, that means at or above the price you indicate (higher being better). If your broker cannot fill you there or higher you won’t get executed.
And also is it allowed to place two limit orders at the same time, lets say eur/usd limit order buy at 1.0000 and sell 1.0000?
No because one of them would be immediately active for execution. Using your example, if the current market price is 0.9950 then the market is already “better” than the buy limit order price.
are there any additional payments to use limit orders? thanks.
Generally no.
The payment is in your pocket, because it’s much more lucrative to use limit orders!